The following information concerns Transformation Inc.'s equivalent units in June: What are Transformation's equivalent units for May when using the weighted average method?
$$\begin{array} { l r } &\text { Units }\
\text { Beginning work in process ( } 50 \% \text { complete) } & 2,000 \
\text { Units started during June } & 8,000 \
\text { Units completed and transferred } & 10,000 \
\text { Ending work in process ( } 70 \% \text { complete) } & 2,900
\end{array}$$
A)10,000
B)12,030
C)12,900
D)22,900

Question

Quizplus · Accepted Answer

The weighted average method combines the work done on beginning inventory and the work done during the current period. To calculate equivalent units for materials (or conversion costs if the percentages were for conversion), you add the full units completed and transferred out to the equivalent units in ending work in process. Here, 10,000 units were completed and transferred out, and the ending work in process of 2,900 units was 70% complete. So, the equivalent units are $10,000 + (2,900 \times 0.70) = 10,000 + 2,030 = 12,030$.

The Following Information Concerns Transformation Inc A)10,000 B)12,030 C)12,900 D)22,900

The Following Information Concerns Transformation Inc A)10,000
B)12,030
C)12,900
D)22,900